Download pdf - How to make products that don't suck - PCA8

How to Create Products

That Don’t Suck A Discovery Process for Creating Breakthrough Products

(For Start-ups through Big Enterprises)

Tom Evans

Lûcrum Marketing

@compellingmktr

High New Product Failure Rate

• Only one product concept out of seven becomes a new

product winner; and 44% of businesses’ product

development projects fail to achieve their profit targets.

• One out of four development projects succeeds

commercially. (75% failure rate)

Robert G Cooper

Copyright 2012 - LÛCRUM MARKETING

High New Product Failure Rate

• Only one product concept out of seven becomes a new

product winner; and 44% of businesses’ product

development projects fail to achieve their profit targets.

• One out of four development projects succeeds

commercially. (75% failure rate)

Robert G Cooper


Why Do So Many Products Suck?

1. Idea to Product


1. Idea to Product

2. One point of market evidence to idea to product


1. Idea to Product


3. Market evidence & validation to product


1. Idea to Product



4. Market evidence & validation, product validation, no

clear market strategy


1. Idea to Product



4. Market evidence & validation, product validation, no clear market

strategy

5. Market evidence & validation, product validation, no

profitable business model

Keys to Products That Don’t Suck

• Compelling Market Opportunity

– Big painful issues

– That many in your target market

– Are willing to pay to solve

• Compelling Solution

– Differentiated

– Profitable business model

– Time to market

• Compelling Market Strategy

– Motivates target market

– To solve problem with your solution

Discovery

+

Validation

Model for Discovery

Four Key Steps

Validate

Hypothesis Plan Strategy Build Solution To Market

Fo

ur

Ke

y P

illa

rs

Market Problem

Product

Business

Model

Market Strategy

Validation

Valid Hypothesis Valid Market

Opportunity

Ready to

Launch Market Growth

Product-to-Market™ Model

Product-to-Market is a trademark of Lûcrum Marketing

Four Key Pillars

• Market Problem – if you’re not solving a problem, there is

no need for a product!

• Product – How do you solve the market problem in a

valuable and differentiated manner?

• Business Model – How do you deliver the product and

profitably capture the value?

• Market Strategy – Who is going to buy it and why?

Model for Discovery

Four Key Steps

Validate


Fo

ur

Ke

y P

illa

rs

Market Problem

Product

Business

Model

Market Strategy

Validation


Opportunity

Ready to




Market Evidence (of Market Problem)

• Sources of Market Evidence

– Customers

– Non-customers

– Market trends/shifts

– Unexpected occurences

– New technologies

– Competitors

– Personal experience

– Etc.

Market Evidence (of Market Problem)

• Sources of Market Evidence

– Customers

– Non-customers

– Market trends/shifts

– Unexpected occurences

– New technologies

– Competitors

– Personal experience

– Etc.

Start With Hypothesis

– Market Segment “X”

– Has problem “Y”

– That happens when “Z” occurs

– We can solve it by creating/delivering solution “A”

E.g.: Small manufacturing operations that use hot

water & steam are unable to manage manufacturing

costs due to the volatility of fuel prices.

We can solve this by providing a high temperature

solar heating system under a lease agreement.

Validate the Hypothesis (1)

• Market problem and market segment(s)

• Speaking to potential customers (buyers & users)

– Most companies don’t and won’t do this

• Significant time investment

– Requires many conversations (cold calling)

• Minimum: 20 conversations

• May take over 100 conversations

• Iterate until validated or rejected


What We Want to Identify

• Problems, Goals, Needs

– What do they want to do that they can’t do?

– What do they want to improve (decrease/increase)?

• Why is this P/G/N important?

• When does this happen (usage scenarios)

• How do you currently do this?

• What is the impact?

• How important is this? What is their current satisfaction?

• Who are they (Personas)?


Validate Hypothesis (2)

• Create product & business model concept

– Low cost way of presenting product concept

– Mockup, prototype, wire frame, story board,

presentation, product description

• Validate product & business model concept

– Present concept and receive feedback

• Does the problem still resonate?

• Does the approach solve the problem?

• What is the Minimum Viable Product (MVP)


Plan Strategy

• Define & discover greater depth

• Validate the market opportunity

– Business Case - Can it be profitable?

• Define detail on product & business model & market

strategy

– Market requirements, product requirements, user

stories, etc.

– Pricing model, delivery mechanism, costs to deliver,

etc.


Build Solution

• Define Minimum Viable Product (MVP)

– Just enough functionality to solve the most important

market problems

– For small segment of market (early adopters, etc.)

– Willing to pay for this functionality

– Fast to market

• Continue to discover, validate, refine!

To Market

• Sell your first customers

• Based upon market validation work

• Targeted Market Development Plan

– Well defined target market

– Clear understanding of buyer roles and their

challenges/goals/needs

– Compelling reason to buy from you

• Value Proposition – what we do for you

• Positioning & Differentiation – why buy our solution

• Continue to discover, validate, refine!

Model for Discovery

Four Key Steps

Validate


Fo

ur

Ke

y P

illa

rs

Market Problem

Product

Business

Model

Market Strategy

Validation


Opportunity

Ready to




Key Principles

• Hypothesis – Discovery – Validate

• Continuous engagement with target market

– Validate important decisions

• Planning is good, but learning is better

• Fail fast – discover fast!

Additional References


Thank You!

Tom Evans

Lûcrum Marketing

[email protected]

+1.512.961.5267

@compellingmktr

mailto:[email protected]

